Debt (Tables)

3 Months Ended

Mar. 31, 2018

The following table summarizes the carrying value of debt as of March 31, 2018 and December 31, 2017, and the debt activity for the three months ended March 31, 2018 (in thousands):



					Three Months Ended March 31, 2018
		Balance as of December 31, 2017			Debt Issuances		Repayments, Extinguishment and Assumptions			Accretion and Amortization			Balance as of March 31, 2018
Mortgage notes payable:
	Outstanding balance	$	2,071,038		$	89	$	(2,672	)	$	—		$	2,068,455		⁽¹⁾
	Net premiums ⁽²⁾	24,652			—		—			(2,123		)	22,529
	Deferred costs	(12,998		)	—		—			607			(12,391		)
Mortgages and other debt, net		2,082,692			89		(2,672		)	(1,516		)	2,078,593
Corporate bonds:
	Outstanding balance	2,850,000			—		—			—			2,850,000
	Discount ⁽³⁾	(1,232		)	—		—			176			(1,056		)
	Deferred costs	(27,274		)	—		—			1,160			(26,114		)
Corporate bonds, net		2,821,494			—		—			1,336			2,822,830
Convertible debt:
	Outstanding balance	1,000,000			—		—			—			1,000,000
	Discount ⁽³⁾	(7,782		)	—		—			1,317			(6,465		)
	Deferred costs	(7,960		)	—		—			1,496			(6,464		)
Convertible debt, net		984,258			—		—			2,813			987,071
Credit facility, net		185,000			380,000		(445,000		)	—			120,000

Total debt		$	6,073,444		$	380,089	$	(447,672	)	$	2,633		$	6,008,494

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(1)	Includes $16.2 million related to one mortgage note payable in default.


(2)	Net premiums on mortgage notes payable were recorded upon the assumption of the respective mortgage notes in relation to the various mergers and acquisitions. Amortization of these net premiums is recorded as a reduction to interest expense over the remaining term of the respective mortgage notes using the effective-interest method.


(3)	Discounts on the corporate bonds and convertible debt were recorded based upon the fair value of the respective debt instruments as of the respective issuance dates. Amortization of these discounts is recorded as an increase to interest expense over the remaining term of the respective debt instruments using the effective-interest method.

Mortgages [Member]

Debt Instrument [Line Items]

Schedule of Debt

The Company’s mortgage notes payable consisted of the following as of March 31, 2018 (dollar amounts in thousands):



	Encumbered Properties	Gross Carrying Value of Collateralized Properties ⁽¹⁾		Outstanding Balance		Weighted-Average Interest Rate ⁽²⁾			Weighted-Average Years to Maturity ⁽³⁾
Fixed-rate debt ⁽⁴⁾	471	$	4,119,779	$	2,053,512	4.93	%		4.0
Variable-rate debt	1	32,903		14,943		5.06	%	⁽⁵⁾	0.4
Total	472	$	4,152,682	$	2,068,455	4.93	%		3.9

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(1)	Gross carrying value is gross real estate assets, including investment in direct financing leases, net of gross real estate liabilities.


(2)	Weighted average interest rate is computed using the interest rate in effect until the anticipated repayment date. Should the loan not be repaid at the anticipated repayment date, the applicable interest rate shall increase as specified in the respective loan agreement until the extended maturity date.


(3)	Weighted average years remaining to maturity is computed using the anticipated repayment date as specified in each loan agreement, where applicable.


(4)	Includes $78.6 million of variable-rate debt fixed by way of interest rate swap arrangements.


(5)	Weighted-average interest rate for variable-rate debt represents the interest rate in effect as of March 31, 2018.

Schedule of Aggregate Principal Payments of Mortgages

The following table summarizes the scheduled aggregate principal repayments due on mortgage notes subsequent to March 31, 2018 (in thousands):



	Total
April 1, 2018 - December 31, 2018 ⁽¹⁾	$	95,867
2019	222,789
2020	265,186
2021	352,770
2022	314,839
Thereafter	817,004
Total	$	2,068,455

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(1)	Includes $16.2 million, excluding accrued interest, related to one mortgage note payable in default.

Corporate Bonds [Member]

Debt Instrument [Line Items]

Schedule of Debt

As of March 31, 2018, the OP had $2.85 billion aggregate principal amount of senior unsecured notes (the “Senior Notes”) outstanding comprised of the following (dollar amounts in thousands):



	Outstanding Balance March 31, 2018		Interest Rate		Maturity Date
2019 Senior Notes	$	750,000	3.000	%	February 6, 2019
2021 Senior Notes	400,000		4.125	%	June 1, 2021
2024 Senior Notes	500,000		4.600	%	February 6, 2024
2026 Senior Notes	600,000		4.875	%	June 1, 2026
2027 Senior Notes	600,000		3.950	%	August 15, 2027
Total balance and weighted-average interest rate	$	2,850,000	4.033	%

Convertible Debt [Member]

Debt Instrument [Line Items]

Schedule of Debt

The following table presents the Company’s $597.5 million aggregate principal amount of convertible senior notes due August 1, 2018 (the “2018 Convertible Notes”) and $402.5 million aggregate principal amount of convertible senior notes due 2020 (the “2020 Convertible Notes” and, together with the 2018 Convertible Notes, the “Convertible Notes”) with their respective terms (dollar amounts in thousands). The OP has issued corresponding identical convertible notes to the General Partner.



	Outstanding Balance ⁽¹⁾		Interest Rate		Conversion Rate ⁽²⁾	Maturity Date
2018 Convertible Notes	$	597,500	3.00	%	60.5997	August 1, 2018
2020 Convertible Notes	402,500		3.75	%	66.7249	December 15, 2020
Total balance and weighted-average interest rate	$	1,000,000	3.30	%

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(1)	Excludes the carrying value of the conversion options recorded within additional paid-in capital of $28.6 million and the unamortized discount of $6.5 million as of March 31, 2018. The discount will be amortized over the remaining weighted average term of 1.3 years.


(2)	Conversion rate represents the amount of the General Partner OP Units per $1,000 principal amount of Convertible Notes converted as of March 31, 2018, as adjusted in accordance with the applicable indentures as a result of cash dividend payments.